Hospital bosses have been hit with a £9m compensation bill after a girl was left with cerebral palsy after complications during birth.

The medical negligence civil action was brought with the help of Accrington solicitors against the Royal Blackburn Hospital with the focus of the case falling on the hospital’s method of delivery.

Leonie Millard, clinical negligence solicitor at Forbes Solicitors, represented the 10-year-old claimant, who cannot be identified for legal reasons, and who will, she said, now receive £9m in compensation.

That’s an increase of over £5.5m in damages, following a change to the discount rate applied to personal injury settlements.

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The case was the first to calculate the claim based on the new discount rate of -0.75 per cent, which came into effect from March 20, and makes the claimant the first reported recipient under the new rate.

Ms Millard said the benefit for the claimant from the new rate is “immense”.

She added: “It vastly improves the long term future financial ability to meet her needs for the rest of her life, which is expected to be long.

“Her parents are comforted to know that there is funding to ensure that her needs are properly met when they are no longer around.”

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In a statement, the solicitors said: “The previous discount rate had been in place for 17 years and the change means that personal injury claims, particularly relating to any future loss, will be much more valuable.

“A landmark decision, the claimant will benefit hugely from the result and will receive 50 per cent of her damages.

"All future claims arising from cerebral palsy and brain injuries will see huge changes while the decision will also impact insurers and the NHS, however the government has set aside money to fund any future action.”

A spokesperson for East Lancashire Hospitals NHS Trust said: “The Trust has noted the Court’s approval of the settlement agreed between the parties. The Trust wish the family well for the future.”